A consequence of a negative externality is that social costs __________ private costs, and the efficient level of output __________.
A. equal; does not require any type of government intervention
B. are less than; requires the government to create a subsidy
C. are greater than; requires the government to impose a tax
D. are greater than; requires the government to create a subsidy
E. are less than; requires the government to impose a tax
Answer: C
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Karl Marx published:
a. Das Kapital. b. General Theory of Communism. c. The Wealth of Nations. d. Capitalist Manifesto.
Suppose the expected price level increases. Which curves in the aggregate demand and aggregate supply model would be affected, and which way would they shift?
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